AUSTIN (Talk1370.com) -- A deal has been reached on delivering property tax relief to Texans, as a second special session continues at the Texas Capitol.
House Speaker Dade Phelan and Lt. Gov. Dan Patrick announced the deal Monday morning, saying the agreement will "deliver the biggest property tax cut in Texas history."
The $18 billion package will include more than $12 billion focused on reducing the school property tax rate for all homeowners and business properties, along with an increase in the state's homestead exemption to $100,000.
The plan also includes a 20% circuit breaker on non-homesteaded properties valued at $5 million and under as a 3-year pilot project, along with savings on the franchise tax for small businesses.
According to the statement, both of the bills will originate in the Senate and the constitutional amendment will originate as a House Joint Resolution.
"Reducing property taxes, providing relief to small business owners, and reforming our appraisal system will ensure economic growth and prosperity, and this agreement is a significant victory for all Texans,” said Phelan. "Negotiations with the Lieutenant Governor have been extremely productive, and by coming together and finding common ground, the House and Senate are one step closer to providing much-needed, much-deserved relief. I look forward to the passage of this package in the coming days and delivering on our commitment to the people of Texas."
“I started working to reduce property taxes at a Capitol hearing in 2003, 4 years before I was elected to the Texas Senate. It has been a long road, but this is a great day for all property owners. Speaker Phelan and I worked diligently together over the last week on the final bill. It made the difference. It may have taken overtime, but the process has produced a great bill for homeowners and businesses,” said Patrick. “I thank all 31 Senators for working together and being patient through this process. I especially thank Sen. Paul Bettencourt, who was with me on that first bus trip to Austin 20 years ago, for his tireless work on this issue.”